The Path Between the Seas

by David McCullough

In Paris the sale of stock in the company—Ferdinand de Lesseps’ second attempt to go public—turned out to be one of the most astonishing events in financial history. La grande entreprise was to be the biggest financial undertaking ever attempted until then. Panama stock was to be more widely held than any ever issued before. And never had any strictly financial proposition inspired such ardent devotion among its investors. The explanation, of course, in good part, was that to most of them it was never a strictly financial proposition. Nothing so vital to French pride just then, nothing led by Ferdinand de Lesseps, could have been seen as that only. Of enormous importance also were the almost limitless expectations associated with venture capitalism—pionnier capitalisme. The talk was of “the poetry of capitalism” and of “the shareholders’ democracy.” The unprecedented response of the French people to de Lesseps had many sides, many psychological levels, and only later, in hindsight, would their allegiance seem blind or his leadership purposefully deceitful.